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The following graph, not done by me, illustrates a point I have tried to make in a number of previous posts.

What this chart indicates is that in order to purchase the 'average' priced house these days you need to be earning 130 percent of the average income; and this rate is going up rather sharply.

The average national income as at May 2016 was $1,160 per week which would be around $60,000 per year. So, based on Callam's chart then, an individual would need to be earning $78,000 per year ($1,500 per week) in order to fund the purchase of the 'average' priced house. And this would leave them with absolutely nothing to live on, pay regular out goings (rates, regos, power, water, gas, insurance, etc.), or do anything else.

Yeah. I know. There are properties that cost less than the 'average', and typically couples purchase houses so there are two incomes to work with. But even so, the stark reality is that the cost of the 'average' house is pretty much out of range of any single income couple and that assumes the person who is working is at least on the average income, or better.

I would also point out that lots of people in the workforce are being asked to take income cuts these days, and the statistics tell us that starting income packages for new starters has not increased now for over three years. In some professions the starting packages for new starter has moved downwards.

Also, it needs to be highlighted, that this situation exists at a time when the interest rate is at an all time low; a low never seen before in Australia. A situation the just about all economists agree cannot last much longer. So what happens when the cash rate starts to make its inevitable climb back up to a norm of something more like 5 or 6 percent and the bank loan rates will then be at 8 or 9 percent (i.e., about 3 percent above the cash rate so the banks can make some useful profit on their borrowings).

My personal opinion is that the government should assist young couples much more in obtaining the roof over their heads.

The devil is in the details, but I think engaged or married couples embarking on the wild adventure of life together who have a combined income under $100,000 should be assisted to the degree of $100,000 and have stamp duty waived. If they separate or divorce within 10 years then they would have to pay back a tenth for each year short of ten years. Hence, if they separated or divorced after five years in the house then they have to pay back $50,000.